Amana FS Daily Market Reports

Crude Oil: Broke Out of Descending Trend Line; Might be on its Way to March 6 Top

Last week, in my technical analysis outlook on Crude Oil prices, I said that the bearish picture was intact and that we needed to wait for the next major move. Last Friday, Crude Oil price finally made an interesting move by breaking the descending trend line that had dominated price since late February. The price might now continue its run towards the March 6 resistance of 63.28 USD per barrel.

Currently, the price is trapped between $63.28 resistance and $60.10 support. Breaching the resistance might turn the trend bullish, and I suspect traders might see this as an opportunity to long Crude Oil with a potential target of $63.92, followed by $66.27.

In my perspective, the trend will remain bearish as long as the price trades below March 6 high of $63.28.

XAUUSD: Bearish Picture Remains Intact, December 22 Low Exposed

The bears have been dominating the precious yellow metal since Wednesday last week, as it closed the session with a drop from $1330 to $1309 against the US Dollar. Consequently, gold prices continue to firmly trade bearish and could be heading towards March 1 low of 1302. Breaching this critical support might expose the December 22 low of $1264.

We can locate the near-term resistance level at $1330.30 and support level at $1302.86. I am watching this support level closely because if the price slides through it, I suspect traders might see this as an opportunity to short XAU/USD with a potential target of $1264.78.

Alternatively, if the price takes out $1330.30 resistance, this bearish view will be invalidated, and I suspect traders might also see this as another opportunity to go long and target the next resistance level at $1340.80 followed by $1361.95.

BTC/USD: Bitcoin Losses Continues, Eyeing February 7 Low

The price of the biggest cryptocurrencies: “Bitcoin” continues to slide under heavy selling pressure since March 6 with important levels of support failing to limit losses. The immense selling was triggered by multiple negative news including Google’s announcement that they are going to ban online advertising of cryptocurrency and initial coin offerings (ICO). Currently, the trend is firmly bearish, and the price might be on its way towards February 7 low of 5650 USD per coin.

We can locate the near-term resistance level at $9870 and support level at $7556. If the price breaches the support level, I suspect traders might see this as an opportunity to short BTC/USD with a potential target of February 7 low of $5650. Only on a break to the trend defining high of $9870 might turn the trend bullish and I suspect the price might drift to the March 6 high of $11655.

ETH/EUR: Price Touched February 6 Support, Eyeing December 22 Low

Ethereum’s price declined sharply and broke the major support level at €460 against the Euro. The heavy selling pressure might be due to the crypto advertising ban announced by Google in which Ethereum probably hit the hardest, as many new coins issued during ICOs were based on Ethereum's ERC20.

Currently, the price is trading just above the February 6 low, and I suspect traders might be looking at this price range to short ETH/USD aiming for December 22 low of €397 followed by December 7 low of €329. Alternatively, some traders might also be looking for a slight price correction around €515 to get a good risk and reward ratio aiming for the same potential targets.

In my perspective, the trend will remain bearish as long as the price trades below March 12 high of €598.

LTC/USD: Breached March 9 Low, Could be Heading Towards February 6 Support

The 5th-rank cryptocurrency, “Litecoin,” declined further today and even breached the $150.132 support against the US Dollar. The price might continue to go down aiming for the February 6 low of $104.

Looking closely in the current situation, if the price revisits $166 range, I suspect traders will see this as an opportunity to further short LTC/USD aiming for a potential target of February 6 low of $104 followed by December 7 low of $84.

Only on a break to the trend defining high of $184.650 will turn the trend bullish and I suspect the price might drift to the February 15 high of $233.258, followed by January 8 high of 275.130.

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